Rare earth metals are an increasingly integral part of everything from automobiles to television sets. But the precious metals are tightly controlled by China, with an excess of 95 percent of current suplly coming from Chinese-owned mines and refineries. The degree of control has allowed China to manipulate prices, cutting back on demand to sell less material for the same amount of profit, any businessperson's dream.

The problem is that it takes several years or more to bring rare earth metal mines and refineries online; and the capital costs of such facilities are very high. It took China decades of clever planning to set itself in its current peachy position of rare earth hegemony. Now the U.S. is racing to try to recover, before Chinese price manipulation deals too much of a blow to the U.S. economy.

Top targets for domestic rare earth production include neodymium -- used in neodymium iron boron (NeFeB) hard drive magnets and cell phone components -- and samarium -- used in samarium cobalt (SmCo) drive magnets. Currently the U.S. has no domestic neodymium producers and only one domestic samarium producer.

The U.S. has no domestic producers of neodymium magnets. [Source: ThinkGeek]

The Government Accountability Office (GAO) in a 2011 research report [PDF] suggests that the U.S. rare earth supply chain, phased out in the 1980s at a time when the 17-element family looked non-critical, will take approximately 15 years to rebuild. The new lab aims to assist in that slow and arduous recovery.

We already know how to mine rare earths in the US, we should have been doing it all along, but we stopped for the stupidest of reasons. There's enough monazite sands in the US alone to cover all our rare earth needs for the better part of the next century. Leave it to the congress to cover everything in red tape in order to pull a profit from shipping the industry to China.

One reason we stopped our rare earth industry is because of all the Thorium by-product from processing monazite. Dump some money into Thorium reactor production, figure out how to separate the Thorium out of the monazite and we win everything forever: all the rare earth metals the US needs for years, and an in-exhaustable source of Thorium power for the next 1000 years.

Oh wait....we're in America. Sorry, I forgot common sense in government isn't allowed here. My mistake.

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